Keeping an eye on the cash movement through the business is key to ensuring healthy financials and business success.
Your cash position helps determine the company’s ability to keep things running smoothly, buy materials for production, and pay your people.
How do you know you have enough cash in the bank for upcoming costs out of the accounts payable (AP)?
It’s called cash budgeting.
When you build and analyze a cash budget, you can see future cash flow issues before they become an issue.
It can provide the data to successfully navigate changes in the business or in the market.
Today, we’ll cover the basics of this essential accounting practice.